Investing in Barbados Real Estate – 5 Things to Know

Investing in Barbados Real Estate – 5 Things to Know

Looking to invest in a second home or rental property in Barbados? Here are five things to consider when investing in real estate in Barbados. 

 

1. No Restrictions on Purchasing Property

There are no restrictions on buying property in Barbados by those who are not Barbadian citizens or permanent residents. Non-residents are required to provide proof of funds and register the funds with the Central Bank of Barbados. Local financing is available for non-Barbadians but restrictions apply. Approval is required from the Exchange Control Authority for the purchase of sale of property in Barbados by a non-national. When purchasing a property in Barbados it is always advisable to work with a reputable real estate company like Realtors Limited who can guide you through choosing an on island attorney and the fees associated with the purchase process.

 

 

2. Favorable Work & Taxation Rules

It is easy to relocate to Barbados. Non-citizens can work in Barbados provided they have a work permit (this usually takes 6-8 weeks to process). Barbados has a Double Taxation Agreements with 34 countries including Canada, the United States, and the United Kingdom. This means that people who are residents but not domiciled in Barbados are only taxed on their income derived from Barbados and on any overseas income remitted in Barbados. 

Barbados is an attractive destination for companies looking to take advantage of low tax rates, double taxation agreements, and exchange of information treaties. In fact, there are over 4,000 International Business Companies (IBC) registered in Barbados, up from around 2,500 five years ago. Companies are required to have a local address to be considered an IBC.

 

 

3. SERP (Special Entry and Reside Permit)

Stay in Barbados for extended periods of time without being limited by a visitor’s visa. Introduced in 2012, SERP makes it easier for non-nationals to live and work in Barbados or visit for extended periods. In order to be eligible for this permit you must be either (a) a high net worth individual - $5 million USD or more in assets or (b) owner of property or investment in Barbados of over $2 million USD – The property or investment must have funds originating from outside of Barbados. The SERP plan is being tweak annually to create new avenues to reside in Barbados through investment. 

 

 

4. No Tax on Capital Gains & Low Transfer Taxes

Capital gains are not taxed in Barbados. This means that there is no tax on gains arising from the sale of an individual’s residence. If you invest in a property in Barbados today and sell it for a profit in the future, you will not be taxed on the profits made on the sale of the property. Foreign currency being used for purchasing real estate can be registered with the Central Bank of Barbados. This allows the investors to repatriate the invested foreign currency on resale.

In Barbados, transfer taxes and stamp duty are paid by the seller. Stamp duty is charged at a rate of 1% and transfer tax is 2.5% of the gross consideration above US $25,000 (the first US $75,000 being exempt if a building is included in the sale). The team of qualified real estate agents at Realtors Limited will guide you through the process from start to finish to ensure you get the maximum profit if you ever intend to sell your investment. At Realtors Limited we believe in 'Service Beyond the Sale.'  

 

 

5. Explore your options.

Barbados has a wide range of real estate opportunities with options for any budget. One bedroom apartments and condos in Barbados without a beach view can be purchased for around US$250,000 and even lower. Beachfront properties require more of an investment starting at around US$750,000 and up. Other attractive options include gated neighborhoods with a range of amenities like the villas at Royal Westmorland or purchasing land to build your dream home. There is a wide range of inventory available from cozy south coast beach getaways like at The Sands or the Condos at Palm Beach to grand mansions perfect for the whole family like San Flamingo. Looking for a West Coast investment, check out beachfront St. Peter's Bay or The Falls Townhouse both with fabulous amenities. 

It is highly recommended to sit down with a local agent to discuss your options based on your budget. Interested in finding your perfect investment property? Contact our team by emailing info@realtorslimited.com or by calling 246-537-6930. We are always happy to help.

 

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